KUALA LUMPUR (Feb 9): Tanco Holdings Bhd is selling off all the unit parcels in Duta Vista Executive Suites in Kuala Lumpur to Penang-based real estate company Eternal Village Sdn Bhd for RM50 million.

In a filing with Bursa Malaysia, Tanco Holdings said its indirect wholly-owned subsidiaries Tanco Properties Sdn Bhd and Tanco Resorts Bhd signed a sales and purchase agreement yesterday with Eternal Village for the proposed en-bloc sale of the 68 units of apartments and seven common area unit parcels with 75 car park bays within a six-storey building.

Tanco Properties is the registered owner of the property. Pursuant to a timeshare scheme known as the Duta Vista Vacation Ownership Scheme (DVVO) developed via a joint venture between Tanco Resorts and Tanco Properties in 1993, Tanco Resorts owns the beneficial interest in 41 designated apartment units.

Tanco Holdings said the price was arrived at on a “willing buyer and willing seller” basis. The disposal, it said, would provide the group with an avenue to unlock and realise the value of the properties.

Upon completion, the exercise is expected to result in a net gain of about RM4.86 million after taking into account the carrying value of the property and related expenditure amounting to RM44.89 million, estimated provision for income tax/real property gains tax (net of deferred tax) totalling RM150,000, and expenses in relation to the proposed disposal costing RM100,000.

Tanco Holdings said the proceeds will be used to fund Tanco Resorts’ obligations on the dissolution of the DVVO timeshare scheme and the repayment of bank borrowings, which would then pare down the group’s financial commitments, reduce finance costs and improve gearing level.

Tanco’s share price closed yesterday unchanged at seven sen, valuing the group at RM24.33 million. — theedgemarkets.com

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